A reason why30 Apr 2018 06:23
The world�s largest retailer is in talks to merge its UK arm ASDA with J Sainsbury Plc (SBRY.L) in which it will hold a minority stake. Walmart is also looking to acquire a majority stake in India�s leading online retailer Flipkart for $10 billion to $12 billion after years of underperformance there.
The moves underscore Walmart�s renewed focus on catching up with competitors, ranging from grocer Aldi Inc to Amazon.com Inc (AMZN.O), in key international markets. The retailer�s underperforming international business contributed less than a quarter to its total revenue of $500.3 billion in fiscal 2018.
�Walmart has simply been too slow to react when it comes to their overseas business,� said Burt Flickinger, managing director, Strategic Resource Group. �They have finally started taking corrective action and are now dedicating their resources to where they think they can grow,� he said.